effective gold standard. The direct trade between the United States 
and Russia in the years 1020-1922 was negligible. 
Since then, however, a direct and large Soviet-American trade 
has been established. This trade is of such a character that a sub- 
stantial unfavorable balance must be covered every year by the 
Soviet Union. During the six months ending March 31, 1928, alone 
an adverse trade balance of $50,000,000 was created. 
The earliest shipments of gold to this country (1919-1920), 
as shown by V. Novitzky, were made from Siberia by the “white” 
forces who came into possession of a large portion of the Russian 
gold reserve in 1918. An important part in the financial adjustments 
of that period was played by the Anglo-American Syndicate which 
received considerable quantities of gold from the Kolchak gov- 
ernment. 
The gold remaining in the possession of the Soviet authorities 
after the cessation of civil war reached this country during the years 
1021-1022 by way of Sweden, France and Switzerland. 
To quote a dispatch in the New York Times of April z, 1921, 
(pp. 62, 63) “gold coming here in the form of bars bearing the 
official stamp of the Royal Swedish Mint. . . . is generally regarded 
as Soviet gold which has been smelted at the Swedish Mint or given 
in payment for Soviet gold sold to that institution”. The statistics 
of the Swedish, French, Swiss and United States customs (pp. 57-60) 
for 1920, 1921 and 1922 indicate that Russian gold went to Sweden 
and from there was shipped by two routes to the United States, 
one part going directly and the other passing through France and 
Switzerland on the way to this country. 
Aside from gold shipped to this country by way of other 
countries, several shipments of Soviet gold were sent directly from 
Russia to the United States. These took place in 1922, when Soviet 
gold was admitted into this counry in payment for supplies pur- 
chased through the American Relief Administration. The official 
restriction against Soviet gold was also lifted in the case of the 
gold allotted by the Soviet Government to the newly created states 
such as Estonia. and sent bv the latter to the United States 
Mr. M. L. Jacobson, author of the section on the Russian gold 
reserve in the Senate Report, continuing Mr. Novitzky’s story of 
Russian gold, indicates that by the beginning of 1923 practically 
the entire gold reserve inherited from the Czarist Government had 
been exported by the Soviet authorities. The Soviet State Bank, 
created in 1921, did not receive any of the Czarist metal, its original